TMI Blog1979 (8) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... eable to gift-tax or is not chargeable under section 5 of the Gift-tax Act for the assessment year 1964-65 onwards will be eligible for exclusion from the net wealth of an individual ? " It is not necessary to state the facts in detail. Suffice it to say that the relevant assessment years are 1967-68, 1968-69 and 1969-70 for which the valuation dates are 31st March of 1967, 1968 and 1969, respectively. The assessee made certain gifts to his wife during the accounting years relevant for the assessment years 1960-61, 1961-62 and 1963-64. In other words, the gifts were all completed before 31st March, 1963. Relying on the proviso to s. 4(1)(a) of the Wealth-tax Act, the assessee claimed that the value of the assets transferred by the above g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for adequate consideration for the immediate (iv) by a person or association of persons to whom such assets have been transferred by the individual otherwise than under an irrevocable transfer, whether the assets referred to in any of the sub-clauses aforesaid are held in the form in which they were transferred or otherwise : Provided that where the transfer of such assets or any part thereof is either chargeable to gift-tax under the Gift-tax Act, 1958, or is not chargeable under section 5 of that Act, for any assessment year commencing after the 31st day of March, 1964, the value of such assets or part thereof, as the case may be, shall not be included in computing the net wealth of the individual. " The question for consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sferred are chargeable to tax under the G.T. Act or are not chargeable under s. 5 of that Act. Both these conditions are cumulative and if they are satisfied, the value of the assets cannot be included in the net wealth of the transferor under s. 4(1)(a) of the W.T. Act. We may also point out that the wards " after the 31st day of March, 196.4 " in the proviso were substituted by the words " after the 31st day of March, 1964, but before the 1st day of April, 1972 " by the Finance (No. 2) Act, 1971, with effect from 1st April, 1972. The exemption granted by the proviso thus ceases to be applicable in respect of gifts made after the accounting year relevant to the assessment year 1971-72. The learned counsel for the assessee sought support on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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